A Digital Co-op Bank?

A month ago Central 1 published a short ‘white paper’ outlining their rationale for a ‘Digital Co-op Bank‘. The publication follows quickly on the Central 1 conference and AGM in May where virtually all the presentations related to a pending digital revolution in the financial services industry.  New management at Central 1 is making a […]

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Bifurcation?!

We have two different kinds of credit unions in Canada.  This is ‘bifurcation’, as a consultant termed it. They have different profiles, different definitions of success, and different needs from second tier organizations. ‘Consolidation’ was the word that Martha Durdin, CEO of the Canadian Credit Union Association chose to feature in part of her report […]

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Court Action Challenges Coast Capital Decision

A member of Coast Capital Savings is seeking a BC Supreme Court judicial review of Coast’s application to become a bank, specifically the provincial regulatory approval.  Coast is pursuing plans to convert to a ‘federal credit union’ under the Bank Act (Canada), which is defined as a bank that is cooperatively owned.  But to do […]

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OSFI puts it to Provinces?

The recently announced B-20 Guideline from the Office of the Superintendent of Financial Institutions (OSFI) places new income qualifications on borrowers when obtaining a conventional mortgage at federally-regulated financial institutions (FRFI), mostly banks.  Borrowers will have to prove they can afford a loan at @200bp above the quoted rate. The tougher debt servicing test is […]

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Are Real Credit Unions FCU*d?

Real credit unions may have to reconsider their strategic options. History was made with the FICOM approval of the Coast Capital Saving application to be ‘continued’ as a Federal Credit Union (FCU). This action has the potential to totally restructure the BC credit union system.  While the commission did say that would consider the impact […]

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New Government Decisions

As the new Minister of Finance, Carole James, has several issues on her plate.  The two simplest are getting attention, because they are listed in the direction given to her by the new premier.   One is taxation, reversing the scheduled increase that faces large credit unions that no longer qualify as ‘small business’.  And second, […]

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de-Banked

Watch out if you use the word ‘bank’.  On June 30th the Office of the Superintendent of Financial Institutions (“OSFI”) issued an advisory that re-asserted that the use of the words bank, banker, and banking are restricted under The Bank Act.  OSFI expressed displeasure at the expanded use of the words by non-banks and they […]

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Scrutinizing Governance

The leadership at Coast Capital Savings is pursuing the ‘journey’ to become a federal credit union.  A few members of Coast Capital have expressed some alarm at the manner in which the consent of members was pushed through to authorize the project.  I have also written a couple of posts (Bank?, and Sales Culture).   […]

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Regulatory Arbitrage

This is a new frontier for credit unions.  Regulatory Arbitrage is a big part of decision-making in large corporate entities as they choose where and how to do business.  The issue is the potential impact of requirements in certain legal jurisdictions; differing requirements drive corporate structures, governance practices, business strategies, investments, business location, staffing, and, […]

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